Section 80G(5) of the Income Tax Act

Income-tax Act, 2025: s.133

Section 80G(5) falls under section 80G of the Income-tax Act, 1961, which corresponds to section 133 (Deduction in respect of donations to certain funds, charitable institutions, etc) of the Income-tax Act, 2025.

Read section 133 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 80G(5) is Sree Meenakshi Mills Ltd. v. Commissioner of Income Tax (31 ITR 28), cited in 137 of the 2,236 judgments on BharatTax that turn on this section.

Leading authorities on Section 80G(5)

Sree Meenakshi Mills Ltd. v. Commissioner of Income Tax
31 ITR 28 · 1957 · Supreme Court
137
citing judgments

Expenditure incurred for commercial expediency, even without a direct or immediate benefit but indirectly facilitating business, is deductible as laid out wholly and exclusively for trade. The scope of reference jurisdiction under Section 66 is limited to questions of law, allowing challenges to Tribunal findings of fact only if they are perverse, unreasonable, or lack evidence.

CIT v. Dawoodi Bohra Jamat
364 ITR 31 · 2014 · Supreme Court
83
citing judgments

A trust's objects, even if based on religious tenets, can qualify as charitable for tax exemptions if its benefits are not exclusively restricted to a particular religious community or caste.

CIT v. Parma Nand
268 ITR 172 · 2004 · High Court
81
citing judgments

Whether there was sufficient cause for delay in making applications for registration under section 12A and 80G is always a question of fact, and contumacious conduct by the assessee must be established for levying penalty under section 271C for non-deduction of TDS.

Udhavdas Kewalram v. CIT
66 ITR 462 · 1967 · Supreme Court
59
citing judgments

The Income-tax Appellate Tribunal performs a judicial function under the Indian Income-tax Act, invested with authority to finally determine all questions of fact. When deciding an appeal, the Tribunal must consider all material facts with due care, record findings on all contentions, and maintain a judicial balance between the revenue and taxpayer claims. The power to condone delay by enacting section 5 of the Limitation Act of 1963 enables courts, including the Tribunal, to do substantial justice, with "sufficient cause" being an elastic expression.

Shree Swaminarayan Gadi Trust v. CIT
162 Taxmann.com 772 · 2024 · Reported
44
citing judgments

Where a trust application has a curable defect, the assessee should be allowed an opportunity to explain and rectify the defect before the CIT (Exemption). The appellate tribunal may allow the appeal and direct the CIT to reconsider the application.

Fifth Generation Education Society v. CIT
185 ITR 634 · 1990 · High Court
44
citing judgments

Registration under Section 12A and approval under Section 80G are distinct from assessment; issues relevant to assessing income under Section 11 cannot be grounds for rejecting an application for registration or approval.

CIT (Exemptions) v. Bayath Kutchhi Dasha Oswal Jain Mahajan Trust
74 Taxmann.com 199 · 2016 · High Court
35
citing judgments

Section 13(1)(b) of the Income Tax Act is applicable at the stage of granting exemption, not during the process of granting registration under section 12A/12AB, provided the trust's objects are charitable in character for the general public at large and not solely for the benefit of a particular religious community.

Bishnupur Public Education Institute v. Commissioner of Income Tax (Exemption)
139 Taxmann.com 121 · High Court
33
citing judgments

The delay in filing an application for approval under section 10(23C) cannot be condoned by the CIT (Exemption) if it is filed beyond the prescribed time limit, as this decision was affirmed by the Kolkata Tribunal in Bishnupur Public Education Institute.

CIT (Exemptions) v. Shree Tapeshwar Hanumanji Bajrang Charity Trust
122 Taxmann.com 98 · 2020 · High Court
30
citing judgments

Registration under Section 12A or 12AB of the Income-tax Act is a mandatory pre-condition for obtaining approval under Section 80G of the Act. Consequently, if an assessee lacks valid registration under Section 12A/12AB, their application for approval under Section 80G is liable to be rejected.

Esthuri Aswathiah v. CIT, Mysore
66 ITR 478 · 1967 · Supreme Court
29
citing judgments

The Income Tax Appellate Tribunal functions judicially and must decide all questions of fact and law before it. The Tribunal may act upon probabilities and use presumptions to bridge gaps in evidence, especially when conclusive proof is not available due to delays or the nature of transactions.

Judgments on Section 80G(5)

Pranab Micro Services Federation, Nadia vs. CIT(Exemption), Kolkata.

In the result, the appeal of the assessee is treated as allowed for 5

ITA 438/KOL/2024[N/A]Status: DisposedITAT Kolkata11 Mar 2024

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A No.438/Kol/2024 Assessment Year: N/A Pranab Micro Services Federation,………………………..................……Appellant C/O. Paresh Saha, 30, Manipur Road, Nabadwip, Nadia-741302, West Bengal [Pan: Aakcp9808J] Vs. Cit(Exemption), Kolkata......................…................…........……...…..…..Respondent 10B, Middleton Row, Kolkata-700071 Appearances By: Shri Manoj Kataruka, A.R., Appeared On Behalf Of The Appellant. Shri P.P. Barman, Addl. Cit, Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : March 08, 2024 Date Of Pronouncing The Order : March 11, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 26.02.2024 Of The Commissioner Of Income Tax (Exemption), Kolkata [Hereinafter Referred To As ‘Cit(Exemption)’] Rejecting The Application Of The Assessee For Final Approval As Per The Provisions Of Section 80G(5)(Iii) Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. Brief Facts Of The Case Are That The Assessee Has Already Been Registered As A Charitable Institution Under Section 12Aa Of The Income Tax Act. The Assessee Thereafter Applied For Provisional Approval Under Clause (Iv) To First Proviso To Section 80G(5) Of The Act. The Assessee Was Granted Provisional Approval U/S Clause (Iv) To First Proviso To Section

Section 12ASection 80GSection 80G(5)Section 80G(5)(iii)

Anudip Foundation for Social Welfare, Kolkata vs. CIT(Exemp), Kolkata

The appeal of the assessee is allowed accordingly and the ld

ITA 1341/KOL/2023[N/A]Status: DisposedITAT Kolkata11 Mar 2024

Bench: Shri Sanjay Garg & Girish Agrawali.T.A No. 1341/Kol/2023 Assessment Year: N/A Anudip Foundation For Social Welfare…………………........................……Appellant Cimsys Towers Plot-Y13, Block-Ep Salt Lake City Sector-V Kolkata - 700091 [Pan: Aagca3551K] Vs. Cit(Exemption), Kolkata......................…................…........……...…..…..Respondent Appearances By: Shri Giridhar Dhelia, A/R, Appeared On Behalf Of The Appellant. Shri S. Datta, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : March 4Th, 2024 Date Of Pronouncing The Order : March 11Th , 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 22.11.2023 Of The Commissioner Of Income Tax (Exemption), Kolkata [Hereinafter Referred To As ‘Cit(Exemption)’] Rejecting The Application Of The Assessee For Final Approval As Per The Provisions Of Section 80G(5)(Iii) Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Brief Facts Of The Case Are That The Assessee Was Already Registered/Approved U/S 80G(5) Of The Act As A Charitable Institution Since 2008. However, An Amendment Was Brought Into The Relevant Provisions Of Section 80G Of The Act Vide Taxation & Other Laws

Section 80GSection 80G(5)Section 80G(5)(iii)

IAC Patrons Foundation, Kolkata vs. CIT(Exemption), Kolkata

In the result, the appeal of the assessee is treated as allowed for 5

ITA 320/KOL/2024[00]Status: DisposedITAT Kolkata07 Mar 2024

Bench: Shri Sanjay Garg & Rajesh Kumari.T.A No.320/Kol/2024 Assessment Year: N/A Iac Patrons Foundation……………………………… ........................……Appellant 5A, Woodburn Park Road, 3Rd Floor, Woodburn Central, Kolkata – 700020. [Pan: Aafci1833D] Vs. Cit(Exemption), Kolkata......................…................…........……...…..…..Respondent Appearances By: Shri Arvind Agarwal, Advocate, Appeared On Behalf Of The Appellant. Shri S. Datta, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : February 28, 2024 Date Of Pronouncing The Order : March 07, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 11.02.2024 Of The Commissioner Of Income Tax (Exemption), Kolkata [Hereinafter Referred To As ‘Cit(Exemption)’] Rejecting The Application Of The Assessee For Final Approval As Per The Provisions Of Section 80G(5)(Iii) Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Brief Facts Of The Case Are That The Assessee Was Already Registered/Approved U/S 80G(5) Of The Act As A Charitable Institution Since 2021. However, An Amendment Was Brought Into The Relevant Provisions Of Section 80G Of The Act Vide Taxation & Other Laws

Section 80GSection 80G(5)Section 80G(5)(iii)

Hijaldiha Vivekananda Seva Samity, Bankura vs. CIT(Exemption), Kolkata

In the result, both the appeals of the assessee are treated as allowed for statistical purposes

ITA 280/KOL/2024[00]Status: DisposedITAT Kolkata29 Feb 2024

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A. No.279&280/Kol/2024 Hijaldiha Vivekananda Seva Samity…................…...……………....Appellant At & Post Hijaldiha, Bankura-722138, W.B [Pan: Aaaah1978F] Vs. Cit(Exemptions), Kolkata…...…..........................................…..…..... Respondent Appearances By: Shri P. K. Roy, Ar, Appeared On Behalf Of The Appellant. Shri S. Datta, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : February 27, 2024 Date Of Pronouncing The Order : February 29, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeals Have Been Preferred By The Assessee-Trust Against The Separate Orders Both Dated 23.11.2023 Of The Commissioner Of Income Tax (Exemptions) [Hereinafter Referred To As ‘Cit(E)’]. 2. The Assessee In Ita No.279/Kol/2024 Is Aggrieved By The Action Of The Cit(E) For Rejection Of The Assessee’S Application For Grant Of Provisional Registration U/S 12A(1)(Ac)(Iii) Of The Income Tax Act (Hereinafter Referred To As The ‘Act’), Whereas, In Ita 280/Kol/2024, The Assessee Has Assailed The Order Of The Cit(E) For Rejection Of The Application Of The Assessee For Grant Of Provisional Approval Under Clause (Iii) Of 1St Proviso To Section 80G(5) Of The Act. 3. At The Outset, The Ld. Counsel For The Assessee Has Brought Our Attention To The Impugned Orders Of The Cit(E) To Submit That The Same

Section 12A(1)(ac)Section 80G(5)

Hijaldiha Vivekananda Seva Samity, Bankura vs. CIT(Exemptions), Kolkata

In the result, both the appeals of the assessee are treated as allowed for statistical purposes

ITA 279/KOL/2024[00]Status: DisposedITAT Kolkata29 Feb 2024

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A. No.279&280/Kol/2024 Hijaldiha Vivekananda Seva Samity…................…...……………....Appellant At & Post Hijaldiha, Bankura-722138, W.B [Pan: Aaaah1978F] Vs. Cit(Exemptions), Kolkata…...…..........................................…..…..... Respondent Appearances By: Shri P. K. Roy, Ar, Appeared On Behalf Of The Appellant. Shri S. Datta, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : February 27, 2024 Date Of Pronouncing The Order : February 29, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeals Have Been Preferred By The Assessee-Trust Against The Separate Orders Both Dated 23.11.2023 Of The Commissioner Of Income Tax (Exemptions) [Hereinafter Referred To As ‘Cit(E)’]. 2. The Assessee In Ita No.279/Kol/2024 Is Aggrieved By The Action Of The Cit(E) For Rejection Of The Assessee’S Application For Grant Of Provisional Registration U/S 12A(1)(Ac)(Iii) Of The Income Tax Act (Hereinafter Referred To As The ‘Act’), Whereas, In Ita 280/Kol/2024, The Assessee Has Assailed The Order Of The Cit(E) For Rejection Of The Application Of The Assessee For Grant Of Provisional Approval Under Clause (Iii) Of 1St Proviso To Section 80G(5) Of The Act. 3. At The Outset, The Ld. Counsel For The Assessee Has Brought Our Attention To The Impugned Orders Of The Cit(E) To Submit That The Same

Section 12A(1)(ac)Section 80G(5)